I'm Matt Schifrin vice president and managing editor of Investing for Forbes Media. I have worked for Forbes for more than 25 years and learned business journalism under Forbes’ late great editor Jim Michaels. For the first 15 years of my career, I wrote mostly investigative features but now I am responsible for investing and finance content in Forbes Magazine and on Forbes.com. I'm also editor in charge of Forbes Newsletter Group and Forbes iConferences and I used to run Forbes Best Of The Web. I won a SABEW award in 2012 and a MIN Best of The Web award in 2009. My book, The Warren Buffetts Next Door, The World's Greatest Investor You've Never Heard Of was published in 2011. I am a graduate of Cornell University.

Despite Election Worries Chartist Says To Go All In On Stocks

Famed money manager and prescient bubble spotter Jeremy Grantham is worried about the market. He wants nothing to do with the stocks in 2013 –except the very biggest blue chips. Hedge fund great Jim Rogers is likewise fretful for next year and is buying agricultural commodities.

Despite these two investors’ impressive pedigrees, there are multitudes who swear by technicals, or chart patterns depicting demand and supply metrics that tend to repeat themselves. One of the best technicians we know is Dan Sullivan, The Chartist who has been penning his successful newsletter for 43 years.

Here is what Dan Sullivan wrote last night to his subscribers:

With the election still up for grabs and the “fiscal cliff” looming dead ahead, many analysts feel that a correction is already underway and that it will get a whole lot worse before it gets better. We feel that it’s way too early to throw in the towel on this bull market. It has only been 16 sessions since the Dow last recorded bull market highs and it has only fallen 3.6% in the interim. This isn’t very much in the scheme of things considering the fact that the market as measured by the Dow has been in a powerful bull market since March of 2009, more than doubling in price.

The Daily Advance/Decline Line chart could not look more bullish. We say this because the Advance/Decline Line in the majority of instances peaks out well ahead of the overall market.”

But Sullivan argues in his recent newsletter that there is another historically accurate pattern that would keep you all in on stocks, especially big Dow Jones Industrial Average-sized stocks (note that Grantham and Ken Fisher love the very biggest blue chip stocks). It’s the “May – November ” phenomenon, which would have you buying stocks seasonally starting in November and selling them for the summer by May.

Here is Sullivan’s take:

“Historically, November has been the start of a very strong seasonality period. Based on the adage of “Sell in May and go away” and popularized by Yale Hirsch’s Stock Traders Almanac, the period from November through April has been significantly stronger than the May to October period. The pattern is also known as the Halloween Indicator and has been the subject of several research papers including “The Halloween Indicator: Everywhere and All the Time” by Ben Jacobsen and Cherry Yi Zhang October 1, 2012.

The paper was a follow up to an earlier study from Jacobsen and Sven Bouman conducted in 2001. Both papers demonstrated the pattern’s existence in the majority of stock markets around the world. In the first study they found that it took place in 36 out of the 37 developed and emerging markets they examined. In the latter study, they increased the study to 108 stock markets and hundreds of years of data and discovered the same anomaly—that the November through April period outperformed the May to October period by a significant margin. ”

According to Sullivan’s calculations had you followed this seasonal buy/sell approach investing $10,000 in the S&P 500 since 1980, you would have amassed $88,000 by the end of 2011 versus $17,000 had you held during the April through October periods.

As an unabashed market timer Dan’s recommendation currently is to be 100% invested in stocks. Based on their relative strength ratings his latest additions to his portfolio are Amgen, Home Depot and Whirlpool, which were trading 14%, 13% and 46% above their 200-day moving averages.

Be aware that as a trader Dan can turn on a dime on individual stocks if his charts start to deteriorate.

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